Peri Pakroo - The Small Business Start-Up Kit: A Step-By-Step Legal Guide

In Nolo you can trust.

THE NEW YORK TIMES

Nolo is always there in a jam as the nations premier publisher of do-it-yourself legal books.

NEWSWEEK

Nolo publications... guide people simply through the how, when, where and why of the law.

THE WASHINGTON POST

[Nolos]... material is developed by experienced attorneys who have a knack for making complicated material accessible.

LIBRARY JOURNAL

When it comes to self-help legal stuff, nobody does a better job than Nolo...

USA TODAY

The most prominent U.S. publisher of self-help legal aids.

TIME MAGAZINE

Nolo is a pioneer in both consumer and business self-help books and software.

LOS ANGELES TIMES

Praise for The Small Business Start-Up Kit

Peri Pakroo has created the perfect legal resource for small business owners who want to create a strong, viable and ethical business. It will save you time, energy and legal fees!

PAMELA SLIM, author, Escape from Cubicle Nation and Body of Work

Peri walks you through many of the most intimidating aspects of running a small business with solid, tested strategies for success.

DAMIAN TAGGART, Chief Business Development Officer, Meow Wolf

The Small Business Start-Up Kit not only helped me launch my multifaceted business both practically and successfully, it helped me appropriately prepare for that launch (and guided me through those first several months of confusion, uncertainty, and excitement). Peri generously offers her experience and expertise to readers as she clearly addresses everything from choosing the right business name to paying taxes to hiring employees. I could not have opened my art gallery or formalized my freelance services without this book, nor would I dare embark on any other business ventures without it!

NANCY ZASTUDIL, Owner/Director, The Necessarian, LLC (DBA Central Features Contemporary Art)

Covers a wide range of topics, from selecting a marketable name to small business laws, taxes and contracts.

MIAMI HERALD

Answers important questions, including whether to incorporate and how to price merchandise.

REAL SIMPLE MAGAZINE

11th Edition

Peri H. Pakroo, J.D.
Edited by Elizabeth Gjelten

ISSN: 2325-3673 (print)

ISSN: 2331-8139 (online)

ISBN: 978-1-4133-2723-6 (pbk)

ISBN: 978-1-4133-2724-3 (ebook)

This book covers only United States law, unless it specifically states otherwise.

Copyright 2000, 2003, 2004, 2006, 2008, 2010, 2012, 2014, 2016, 2018, and 2020 by Peri Pakroo. All rights reserved. The NOLO trademark is registered in the U.S. Patent and Trademark Office. Printed in the U.S.A.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without prior written permission. Reproduction prohibitions do not apply to the forms contained in this product when reproduced for personal use. For information on bulk purchases or corporate premium sales, please contact the Special Sales Department. Call 800-955-4775 or write to Nolo, 950 Parker Street, Berkeley, California 94710.

Please note

We believe accurate, plain-English legal information should help you solve many of your own legal problems. But this text is not a substitute for personalized advice from a knowledgeable lawyer. If you want the help of a trained professionaland well always point out situations in which we think thats a good ideaconsult an attorney licensed to practice in your state.

Its a great feeling to shepherd this latest edition of my book out into the world. As a self-employed person and small business owner, I constantly have what feels like a million different projects on my plate. This is my choice, of course, and like many self-employed folks Im allergic to routine; I thrive on variety and the challenge of creative problem-solving. Still (and I think this is also true of many self-employed folks), managing the whirl of new projects and ventures can be a tiring dance. Having one constantwhich for me is writing and advising clients about self-employmentis almost like a delicious resting pose. It has become the downward dog of my work life: actual work, but work in which I can settle in and relax and find new depth and strength the more I do it. Im very thankful to have found a career path that I love and that fits me well, and Im so very gratified that it helps other people pursuing their own path as well.

I especially want to thank Marcia Stewart for being my editor for the past several years and editions of this and my other books. Marcia, your keen eye and smart ideas always improve my work. Thank you for your attention, clarity, and patience. I feel truly lucky to work with you.

Id also like to thank Patricia Allaire who helped me immeasurably with anxiety issues I suffered with after my daughters health crisis a few years ago. As a self-employed person, it is tempting to muddle on in isolation, in large part because it is possible to do so when you set your own hours and dont need to interact with co-workers. Im so glad I found Patricia who helped me learn more about how anxiety works and how to lessen its grip. Just a few months of targeted work have served me incredibly well for the last couple years, and Im so thankful for it.

Thanks again to my loves, Turtle, Jila, and Jasper. You are my anchors and I love you beyond words.

P.S. Many other people have helped with the previous editions of this book. See the Acknowledgments below for details.

The Acknowledgments below are almost current (I updated them just a couple years ago), but I felt inspired to add this brief update to celebrate the eighth edition of this book, which was originally published in 2000. Nine editions! This is an exciting milestone. Im hugely thankful this book keeps on going and continues to help readers pursue their ideas, their projects, and their dreams.

In the past few years, a number of people have entered my life who have helped me in important ways with their support, friendship, creativity, and just all-around awesomeness. Sage Harrington, thank you for everything: child care, research help, podcast jingles, tiny dogs, playing and singing, and just being you. You have been a lifeline through some very tough times; thank you. Matt Corson, thank you for your awesome songs and for pushing me to learn new things. Its a joy to be in your band and Im glad you can out-boss me (sometimes). Chris Burnett, thank you for roping me into your podcasting kingdom; it has been a super-fun ride! Huge thanks to everyone involved with Pyragraph.com, especially Lex Gjurasic, Eva Avenue, Adam Rubinstein, David Dabney, and Turtle OToole. Im incredibly proud of what weve accomplished, and all of it was under insane circumstances. Immeasurable thanks to the many doctors and nurses who have helped my girl and my family during a very intense medical experience over the past year-plus: Dr. Mark Unverzagt, Dr. Michael Grimley, Kathleen Novak, Dr. David Margolis, Lynette Anderson, Dr. John Bucuvalas, Jennifer Willoughby, and Dr. Lucille McLoughlin, among many others. Debbie Weissman, you have also been an absolute lifesaver with your love, friendship, and support; thank you. Endless love and thanks to my entire family, especially Turtle, Jila, and Jasper. Your love keeps me going.